Japan’s GPIF Must Cut Bonds, Change Governance, Ito Says
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The world’s largest manager of retirement savings should reduce holdings of domestic bonds and create a board of directors to replace the current governance structure, an expert panel told Japan’s ruling party.
The 124 trillion yen ($1.2 trillion) Government Pension Investment Fund should decrease its allocation to Japanese government bonds and increase investments in other assets, Takatoshi Ito, chairman of a group advising lawmakers on pension allocations, said to a Liberal Democratic Party committee today in Tokyo. A new board of directors should take charge of decision-making and the law governing the fund must be changed if GPIF is unable to overhaul its leadership itself, Ito said.